Credit Card Balance Transfer

Balance transfer credit cards are an excellent choice for transferring balances from one card to another. The main purpose of the transfer, is to move debt from a card with a higher interest rate to one with a lower interest rate. In this way, consumers can save money by reducing or even eliminating the financing costs. In the search for the best balance transfer credit cards, it is important to consider variety of factors.

The annual percentage rate (APR) is one of the factors that consumers should be looking at in seeking the best credit cards. Credit cards are hoping to steal business away from other credit card companies. As a result, they often offer special introductory lower interest rates for balance transfers. In many cases this is even 0.00% APR. Make sure that a balance credit card offers the lowest APR, and then only you should go ahead for balance transfer. Do not use it for shopping, that is what the credit card companies hope, so they can assess finance charges on purchases made with your card.

The length of the special introductory APR varies from card to card. Sometimes, the duration also depends on the applicant's credit history. It is important to be sure how long this time and goals for the balance paid in full when the first time. The best balance transfer credit cards is the one where the special introductory rate remains in effect for the duration of the balance. In other words, the effective annual interest rate has remained the same until the balance is paid in full. For consumers who are unable to pay the balance in the initiation time, this is undoubtedly the best way to go.

Most credit card charge fees for balance transfers. These fees are usually a certain percentage of the total amount of funds transferred. More generally, this fees are 3% of the amount transferred and now a days credit card companies are increasing it to upto 5%. Many credit cards, however, waive such costs during the introductory phase. It is better for the consumer to choose a balance transfer credit cards without fees, otherwise, you can end up paying large amounts of fees which offset the advantage in obtaining low or 0 percent apr.

Some card requires balance transfer at the time of application for the card while others allow the same during entire introductory period. You could choose either one based on your preference.

Some balance transfer credit cards put specific requirements on the kind of balances which can be transferred. Some cards do not allow balance transfer from same companies i.e. if you have visa card from xyz bank and then you get visa card from abc bank there is a good chance that balance transfer will be denied because both cards are administered by visa. Some cards only allow business expenses to be transferred. It should be always wise to read fine print or ask tons of questions before jumping onto balance transfer offers.

Many cards have special incentive programs which actually are helpful. They range from cash back, free air miles to free gas. You should choose one that best fits your requirement. Some offer points which can be accumulated for purchases premium shows and premium hotel rooms. I know one of my colleague who could not get hotel room in Manhattan in spite of offering higher amount but luckily remembered that he had American express with lots of reward points and he called American express and got the room in the same hotel.

In summary a best balance transfer credit card should have low or zero percent apr with no or very low balance transfer fees as well as great rewards program attached to it.

Article source: 0balancetransfer us